Chinese Cars in India, a Match Made in Heaven

China and India are surely the two auto markets that have grown the most in the last couple of years, defying the economic recession and selling millions of cars per year. But how about a mix of the two? While Indian carmakers are yet to launch their models in China, companies selling vehicles in China are already making the final touches to their plans to begin selling in India.

Jianghuai Automobile Company (JAC), Brilliance Auto, Chery international, Build Your Dreams (BYD) and Beiqi Foton are all preparing for the Indian takeover, a report by Business Standard India informs while adding that several models made in China are expected to hit the market in the next five years.

“A lot of cross-pollination is going to happen between the automobile industries in India and China. Shanghai Automotive Industry Corporation (SAIC) has already made an entry into the market here and manufacturers such as Chery, Brilliance, JAC, BYD and Beiqi Foton are working out modalities to start operations," the newspaper reported citing sources familiar with the matter.

"These companies have products which are a strategic fit for the Indian market. Some of them have already made enquiries regarding the vendor base available in India for starting operations here.”

India is very likely to become the world's fourth largest auto market and companies have already focused on local operations, trying to snatch a bigger slice of the local boom. Chinese carmakers have basically the same goal, as most of them are currently evaluating the possibility of not only launching cars in India but also setting up production facilities in the country for reduced costs.